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Jim, create a new landing page template to get to that drop down where free form and guided are options.
I believe you are on the "create new landing page" vs "template" option.
Those docs seem a little off.
Follow this skillbuilder video, it starts talking about guided templates at 14:20. Creating and Editing Landing Pages in Marketo
Thanks for pointing-out the distinction between creating a LP and a LP template; and for thoughtfully providing an informative link - much appreciated.